After last month's interest rate rise to 4.5 percent today marks the highest rate seen in fifteen years at 5 percent - and a sign of the struggle to contain inflation with a 0.5 percent jump, which is double the recent 0.25 percent climbs.
The majority of the decision makers opted for the higher rate jump as inflation remains stagnant at near 9%, way north of the 2% level the BoE is expected to maintain.
In a further blow to the beleaguered government, who have been under much criticism, once again, in recent weeks as countries other than the UK are not struggling with inflation to the same extent - and thus not raising rates in as steep as fashion.
The Bank's governor, Andrew Bailey put the blame for inflation on companies trying to rapidly raise profits by increasing prices and the rate of wage growth - both factors he states are 'unsustainable'.
The prospects of a rate rise such as today's throwing fuel on the sparks of recession were not ignored when coming to the decision today - with the minority of MPC members signalling that the rate rise may be too sharp and positive data from previous rate rises is yet to hit forecasts. They also stated inflation will start to fall as we approach autumn/winter 2023.
Nevertheless people can expect another one percent added to base rates by New Years Day - something mortgage holders who are susceptible to rates rises will not be pleased to hear.
Today's rise will impact those on variable, discount and tracker mortgages immediately and those coming close to an end of cheap fixed deal will have the compounded rate rises to contend with when remortgaging - the average two year fixed mortgage has now hit 6 percent.
Months ago we speculated that a return of MIRAS - mortgage interest relief could be used by a government trying to help mortgage holders... without giving grants or similar like during the pandemic and over the energy crisis. Now this has become an argument point with Parliament with the Shadow Labour Government stating that Jeremy Hunt is ignoring the misery faced by mortgage holders - and some are stating that without introducing MIRAS Rishi Sunak has even less hope of winning the next General Election.